Ethanol plus investments limited

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Text of Ethanol plus investments limited

ETHANOL PLUS INVESTMENTS LIMITED (EPIL)COMPANY PROFILEThe Company was incorporated in Uganda in March 28th 2013 as Ethanol Plus Investment Limited to construct and operate a fuel grade bio-ethanol production plant and utilize the bi-products to promote fish farming and charcoal production in accordance to the companys Memorandum of Association and in compliance with the applicable laws of the Republic of Uganda. EPILs interest in renewable energy investments comes after a ray of guidelines from the government and any legal and institutional framework.

ABOUT ETHANOLEthanol is a renewable, environmentally clean burning and high octane motor fuel source that is chemically produced by the fermentation of sugars found in plants like sugarcane, grains and other biomass. Ethanol can be produced from a number of different types of grains such as corn, wheat and sorghum as well as from agricultural waste products such as rice hulls, cheese whey, potato waste, brewery and beverage wastes and forestry and paper wastes. However, EPIL will produce ethanol using sugarcane because sugarcane contains large quantities of carbohydrates and is in great supply in Uganda than the grains. Such carbohydrates convert into glucose more easily than most other kinds of biomass.

OPERATION OF THE FACILITYUnlike ethanol production around the world, our facility will mainly use sugarcane as the raw material with alternatives such as sweet sorghum viewed as future prospects. During fermentation 70% of carbon dioxide will be induced in water for the formation of algae. The other 30% will be captured and channeled to the green house producing vegetables to enhance growth. 30% of the bagasse (sugarcane biomass) will be used for heating the mush, while the 70% being ground into saw dust and converted into charcoal.After processing the grain, 70% of the product will be mixed with algae to make livestock feed for livestock such as goats, cows, rabbits, chicken and rabbits. Another 30% will be used for the production of mushrooms.

LOCATIONEPIL main production plant is in Mayuge district, Luyira village in Eastern Uganda(Busoga region) and stands on 7 acres of land. The production plant comprises of Ethanol processing and distillation chambers, above ground fish farming ponds, charcoal making chambers and acts as a collecting point for the raw materials used in all the plant activities.

BRIEF BACKGROUND ON UGANDAS ENERGY USAGEUganda has various sources of energy such as hydroelectricity, solar power, biomass and the traditional source which is charcoal and fuel wood. 80% of the total Ugandan population resides in rural areas. Only 2% of the rural households have access to the hydroelectricity, solar power and biomass because they are expensive. The charcoal fuel wood provides more than 90% of the economies energy needs. More than 80% of the fuel wood consumption is still in the domestic households pricing for cooking as attempts to convert the population to fuel efficient stoves is so slow and difficult due to resistance of change and increased biting poverty levels that makes most households unable to afford kerosene or electricity. In addition, Uganda is highly vulnerable to oil price shocks as it imports almost all of its 7000 bbl. of oil. Expensive foreign energy sources divert precious resources from other areas of need such as transportation, health and sanitation, education, research and technology for a growing economy.Thus the introduction of a cheaper bio-fuel will ensure at least every household is able to afford an energy source that is environmentally clean and sufficient through the cheap prices of ethanol and the ethanol powered stoves that EPIL will introduce.

OBJECTIVESOur primary objective is to create an alternative cheaper and sustainable clean and renewable energy fuel for Uganda. Because it will be domestically produced, ethanol will help reduce Ugandas dependence upon foreign source of energy and will create green jobs in rural areas of the country. To create employment opportunities that will reduce on the poverty issues and improve the socio-economic well being of the Ugandan community by creating a base for both direct and indirect jobs.To raise awareness and information on the environmental conservation and reduce on the sustainable dependency on the environment for energy and food products.To promote research and development by creating a model base for sustainable and renewable bio-fuel energy in Uganda.To provide and increase the food source for the communities, especially produced from the bi-products of ethanol. This increases the food base in domestic households and acts as a source of nutrients to the families for example fish farming.

SERVICES AND CORE COMPETENCIES

Raw materialsThe nature of the companys purpose is majorly on bio-ethanol production. EPIL has designed and is currently developing a six million litres per year (6MM LPY) advanced bio-fuel ethanol production using sugarcane as the target feedstock. Because of the availability of sugarcane, it can be harvested between 10 to 12 months after cutting. They grow well in soils with enough water supplies. About the farm land, sugarcane is got from the 200 acres of farmland. We have an open umbrella contract with the farmers that can have a supply of the agreed 10 acres and above of land to provide us with sugarcane as per the contract in the appendices which makes it up to over 600 acres of land in the first phase of 24 months. Alternatively, the company plans to introduce sweet sorghum as 2nd target feedstock. Sweet sorghum is a subtropical grass that grows well in marginal quality soil and requires less water than sugarcane. This is because sugarcane is traded on the commodities market creating uncontrollable fluctuations in the cost of the raw material.

Advanced bio-fuel plant design The sugarcane bio-fuel facility is a closed loop design. The facility buys the sugarcane for its raw material supply from out growers but plans to grow its own in the future. The plant produces all of its own ethanol fuel; all of the steam required to run the production facility and uses an ethanol run generator to provide electricity for production. Produces liquid fuel for transportation. Produces a cheap liquid fuel for cooking stoves and household heating replacing wood and charcoal as a fuel source. The facility produces a low-carbon ethanol and the carbon credits can be sold or traded on the international market.High level employmentThe advanced bio-fuel production facility will create many permanent jobs and construction jobs of the following kinds; Farming operations concerning out growers will employ 30 to 40 people during harvesting and supply activities. Plant operations will create a total of 25 ongoing jobs for the following operations; Plant operation employees Foremen and supervisors Laboratory technicians Maintenance engineers Journeymen mechanics Office personnel, supervisory personnel Accountants Facility and farm COO and CFO to run the operations When compared to similar projects, the number of indirect and induced jobs in the surrounding community will average around 200 additional jobs created.

Environmental impactIt can be blended with unleaded gasoline in varying percentages and this reduces harmful auto emissions, enhances octane ratings of the gasoline with which it is blended, offers consumers a cost-effective choice, and will in turn decrease on the amount of crude oil Uganda will import from foreign sources.

Community impact 200 indirect and direct jobs Drive towards local energy independence Strengthen agricultural base Local partnerships with business and educational groups Localized development and benefits The plant will act as a research and education centre for mostly the Ugandan community that are interested in acquiring knowledge about ethanol production and related bi-products since ethanol bi-fuel is a cheap, new and unique sustainable energy in Uganda and the surrounding economies. The local community in the producing area around Busoga will be directly rewarded points to the sugarcane growers which gives them access credits in terms of income in between harvest time and the yielding gap. This reduces on the rising poverty levels in the region. Fish farming is carried out in above ground fish ponds of 24ft * 18ft sizes and will increase the food source to the community. The plant will use the bi-product like carbon dioxide during fermentation to produce algae as the basic food for fish. The facility will use bagasse bi-product to make charcoal to be distributed and sold to the local community at a cheaper price that will in a long run reduce deforestation that Uganda is currently facing. The introduction of sweet sorghum will increase the food base and over reliance on sugarcane in the area. This will also increase the availability of chickens, pigs, cattle and other protein based food for the local population. Locally produced ethanol supercharges regional economies. Each litre of alcohol or fuel produces local income that gets recirculated many more times. Future Product developmentThe advanced bio-fuel production facility is designed to be expanded and with the ability to make future co-products like industrial alcohol, cellulosic ethanol or other refined products like bio-butanol.The company has the required technical equipment and capacity to entirely change or divert automobile engines to use ethanol bio-fuel alone. Like in Brazil, the ethanol can replace the imported gasoline requirements of the country while reducing automobile generated pollution in the local area. Many automakers now produce vehicles that will run on 100% ethanol that are sold worldwide.

MARKETING AND DISTRIBUTIONAs an upcoming plant, EPIL shall contract third-party service providers to market our ethanol bio-fuel as we start off and build a relationship with the pub